Crypto

FTX Bankruptcy Is Imminent! Here’s What To Expect Next?

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The founder and CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, reportedly warned investors on Wednesday that the company would have to file for bankruptcy if it does not receive a fresh capital infusion.

As reported by Bloomberg, Bankman-Fried warned investors that his cryptocurrency exchange could run out of money by up to $8 billion and needed $4 billion to stay afloat.

According to the same report, the Securities and Exchange Commission and the Commodity Futures Trading Commission are looking into the situation and its connections to other units of Bankman-crypto Fried’s empire, such as his trading firm Alameda Research.

In the midst of a liquidity crisis, Binance announced on Tuesday that it has signed a non-binding letter of intent to buy FTX.com. However, Binance announced today that it would not proceed, citing the severity of FTX’s financial issues.

FTX Website back?

According to the “IS IT DOWN OR JUST ME” website, the FTX website experienced five consecutive instances of network downtime spanning over two hours on Nov. 9 and was back online at around 9:00 pm UTC. “FTX is currently unable to process withdrawals. We strongly advise against depositing.”

“Our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help.”

On Nov. 8, a statement that was pinned to the top of the official FTX Telegram Group also indicated that withdrawals were stopped, but it gave no timeframe for when they would resume.

“We are waiting for confirmation from our team to ramp it up. Right now we don’t have an ETA but surely will communicate it as soon as we have it,” it said. 

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